Legalizing pot could earn billions for B.C.: study

UBC and SFU researchers find decriminalization would hobble organized crime and encourage less cannabis use

Two weeks after Washington state and Colorado passed measures to legalize marijuana for adult personal use, a coalition of UBC and SFU researchers has found B.C. could earn up to $2.5 billion in revenue from following suit.

Legalizing marijuana in B.C. could generate $2.5 billion in government tax and licensing revenues over the next five years, according to a study published this month in the International Journal of Drug Policy.

The information comes after Washington state and Colorado passed measures two weeks ago approving the legalization of marijuana for adult use under a strictly regulated system.

The study – conducted by a coalition of University of B.C. and Simon Fraser University researchers – used surveillance data from the Centre for Addictions Research to estimate the annual value of the B.C retail cannabis market at between $443 million and $564 million.

Provincial policing agencies estimate that 85 per cent of the cannabis market in B.C. is controlled by organized crime, with the number of grow ops throughout the province nearly doubling between 2003 and 2010.

“This isn’t just a problem because of all the grow ops and home invasions and hydro theft and gang activity,” said the study’s senior author Evan Wood in an interview. “It’s also what fuels the importation of cocaine and guns into Canada.”

He said the study’s findings refute the notion that since B.C.’s marijuana industry is largely an export market, there’d be little tax revenue derived from legalizing and regulating the domestic market.

Wood also said evidence from other jurisdictions that have legalized marijuana, including the Netherlands, shows that rates of cannabis use can be lowered.

“By moving from a violent, unregulated market whose motive is profit to a strictly regulated market whose goals are public health, the evidence from tobacco and alcohol research is that we can actually reduce rates of use,” he said.

A recent Angus Reid poll showed 31 per cent of British Columbians would want cannabis tax revenue used for drug prevention and addiction treatment, while another 31 per cent would direct the funds to health care and 12 per cent would use the money for drug law enforcement.

Former B.C. premier Ujjal Dosanjh said B.C.’s marijuana law enforcement efforts have been “completely ineffective.”

“When you look at the enormous potential to save on policing costs, raise government revenue and wage economic war on organized crime, you understand why U.S. states have recently taken the taxation and regulation approach,” he said in a news release.

Two weeks after Washington state and Colorado passed measures to legalize marijuana for adult personal use, a coalition of UBC and SFU researchers has found B.C. could earn up to $2.5 billion in revenue from following suit.

We encourage all readers to share their views on our articles and blog posts. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, and please keep your comments relevant and respectful. If you encounter a comment that is abusive, click the "X" in the upper right corner of the comment box to report spam or abuse. We are using Facebook commenting. Visit our FAQ page for more information.